How Long Does It Take for an Insurance Company to Pay Out a Car Accident Claim?

Written by Jeremy D. Earle, JD

April 7, 2022

The Time Frame for a Car Accident Claim

Medical bills and car damage repairs may add up to thousands of dollars in a normal car accident. Rather than paying out of pocket, most car accident victims may file a claim with their insurance company.

Colorado is a fault-based insurance jurisdiction, which means that following an car accident, a victim may seek financial compensation from the at-fault driver’s insurance carrier. The time it takes from submitting a claim to getting compensation, on the other hand, varies from one accident to the next.


Living in limbo while an insurance provider reviews your claim may be unpleasant. Medical expenses and charges like a rental car and property damage repairs may pile up. Although policies vary, most car insurance companies have a 30-day limit for handling car accident claims.

As a result, if you submit a claim on January 1st, you should get payment by January 31st. Most insurance companies apply the 30-day limit to major and minor car accidents.

You have 30 days to pay for your accident-related expenditures out of pocket while you wait for payment, or you may work with an accident attorney to cover your upfront costs.

Retaining a legal company to assist you with your car accident case may provide advantages such as the firm paying for your medical treatment, assisting you in gathering evidence such as a police report and medical records, and paying for additional expenditures until you get an insurance settlement or jury judgment.

While you wait for a car insurance claim reimbursement, hiring a lawyer might spare you from paying fees you can’t afford.


If aspects in your car accident insurance claim make it uncommon, you may have to wait longer than 30 days. Your claim may take a few months or perhaps longer to be resolved.

Cases involving catastrophic injuries, wrongful death, many at-fault parties, parties disputing guilt, a lack of proof, or demands for noneconomic damages such as physical pain and emotional suffering may be complicated. Anything that makes your claim stand out might cause a delay in payment.

Suppose the accident victim has not yet reached the point of maximum medical improvement. In that case, the most typical cause for a car insurance claim settlement taking more than

30 days is that the accident victim has not yet reached the point of maximum medical improvement (MMI). MMI is a rating that a doctor will give to a patient after recovering as much as is reasonably possible.

Will. If it takes you more than 30 days to reach MMI for significant injuries, your car insurance claim may take longer to settle. Waiting is, nonetheless, beneficial. Accepting a settlement before MMI might leave you with insufficient compensation for your complete losses.


In many jurisdictions, insurance firms must respond to claims or achieve settlements within a particular amount of time. Although there are no such laws in Colorado, this does not preclude an insurance provider from taking an excessive period to handle your claim. If an insurance company refuses to pay out due to a good cause, you may be able to submit a claim.

A claim for insurance bad faith A bad faith claim may result in not only the payment of your initial settlement but also extra interest and penalty judgments.

It is up to you to pursue a personal injury lawsuit if a motor insurance settlement does not adequately cover your accident-related losses. Most cases are settled in three to four months, but they may take a year or more if they go to trial. In Colorado, you have three years from the date of your accident to bring an injury case.

If you file your claim as soon as possible, you may speed up the process and reduce the length of time you have to wait for a settlement. Working with a personal injury lawyer in    Colorado Springs may help you speed up the claims process. To book a free consultation with our top-rated experts, contact us now.


Three things must happen before receiving a first offer, which is the crucial first step in receiving a car accident settlement check:

The patient has reached maximal medical improvement or has finished treatment. This might take anything from a day to a year.

All medical records and bills, as well as any doctor’s reports for potential lost income and medical expenditures, must be acquired. The timeline for this varies depending on the number of medical data and reports that must be obtained, and it might take anything from a few days to many months.

Obtaining an answer to the demand package. This might take anything from 15 to 90 days. (We check at all big insurance companies to see how long it takes them to react on average.)

Let’s take a closer look at the three important criteria that determine how long it will take for

your case to reach the settlement stage so you know what to anticipate.

The treatment is complete, or the patient has reached maximum medical improvement.

First, the client must either (1) heal completely and need no further therapy or (2) achieve maximal medical improvement. While the client may need extra therapy, this is the best recovery expected to achieve.

Alternatively, if future surgery or other medical treatments are not yet scheduled, an accident lawyer might get a cost estimate from a doctor.

The most common reason for a major injury claim’s delay is this. What is the solution? The objective is to get the physicians — we know a lot of them at this time — to draught a report that will enable you to claim your reasonably expected future expenditures.

A new video shows how long the insurance company will take to give you a settlement in your injury claim.

What is the maximum amount of money you may anticipate for a first offer? Consider a few insurance firms, beginning with Allstate.

The settlement value of your accident case: relate the data to your case to assist you in figuring out how much your case is worth.


What causes personal injury claims to be resolved as rapidly as possible? Lawyers and paralegals are putting in long hours.

A car accident lawyer will need to gather all of the client’s medical records and expenses if the matter will be resolved quickly without a lawsuit for top dollar. The lawyer must gather medical bills and documents at our legal business, as it is at many other personal injury companies.

Medical records are very important. An accident claim settlement will almost entirely be based on the victim’s medical data before a lawsuit is filed. At this point in the game, the most critical variable used by insurance companies to assess value is how these records depict the injuries.

Are the records sufficient? It is debatable. The doctor’s critical views are usually found in the four corners of medical records. In other cases, we require physicians to provide advice on future medical treatment or to resolve uncertainty in medical records, as we stated before.

The second most often asked question is when you can expect to get an insurance settlement cheque after receiving a demand letter.

Example demand letters: demand letters in various personal injury lawsuits that

maximize the claim’s worth.


It takes time for the insurance company to assess the claim when a settlement demand is made together with any pertinent medical bills and documents and any other information needed to resolve the claim.

The majority of injury claims should be resolved in less than three weeks. However, it often occurs. Your accident lawyer should follow up with the insurance company to maintain your case in front of the queue.

What happens if your lawsuit is settled? You have yet to receive settlement money from your insurance company. Your accident lawyer must move the case ahead as swiftly as possible to obtain your money as soon as feasible. After a car accident settlement has been reached, some insurance companies take their time.

The finest attorneys keep a close eye on the insurance company to ensure that you get your settlement cheque as quickly as feasible. Our organization understands that our customers want their money as soon as possible. As a result, we press them to provide the insurance check as soon as possible.

Some victims often inquire about the time limit for the insurance company to reply after receiving a bodily injury demand letter in a car accident case. In most places, the insurance provider is not required to react.

If you are not insured, an insurance company owes you very few responsibilities. Their main purpose is to pay you the least amount of money feasible. They are under no responsibility to treat you fairly.

There’s one more thing you should know before we move on from this subject. If you’ve read this far, you’re hoping to resolve your case as soon as possible. However, in most severe injury cases, you will need to file a lawsuit to maximize the value of your claim.

You don’t need to bring a lawsuit. Lawyers don’t always grasp how important it is for clients to recover their money as soon as possible.

However, if you settle too soon, you may be losing money. When our lawyers file a lawsuit, it often leads to a subsequent offer that is far more than the pre-suit settlement offer.

Insurance companies are frightened by the force of a lawsuit.

This leverage typically convinces them to pay significantly more in a settlement than they would have anticipated before the lawsuit was launched.


Instead of a settlement, we’re now talking about a car accident lawsuit.

Your injury case might be settled at any moment if a lawsuit has been filed for your insurance claim. A few frequent natural inflection points for settlement might help you figure just how long something will take.

The optimum moment to settle a case is usually shortly after it is filed. You’ve informed the insurance company that you’re serious. Many insurers will respond with an immediate and significant increase in the offer (GEICO, Nationwide). More than State Farm and Allstate, Liberty Mutual, and Progressive spring to mind).

After the discovery phase of the action is completed, the second inflection point occurs during the pre-trial meeting (or at a private mediation).

The third time is when the real courtroom steps are ready for a settlement. When a trial is on the horizon, insurance companies are at their most reasonable. A case may settle at any time, but these are the three most prevalent options for post-lawsuit settlement.


When victims inquire about why their call accident compensation is taking so long, they often infer that their car accident lawyer’s negligence is to blame. What is the solution? Maybe. The settlement procedure has constraints that no amount of hustling can overcome.

So it’s possible that your accident lawyer won’t be able to help you because they’re awaiting medical data or a response from the insurance company. However, there is little doubt that the delay is often caused by a plaintiff’s counsel who is not keeping up with the case.

What’s the best way to figure out why your case is taking so long? Communication. Call your lawyer and inquire about the reason for the delay.


An experienced attorney can assist you in obtaining the compensation you deserve for your injuries. Our attorneys feel they are the top accident lawyers in Colorado Springs. Our attorneys try to secure you a rapid settlement while ensuring that all of the facts are in place to offer you the greatest possible payout.

Our attorneys have the knowledge and expertise to expedite the settlement process by putting your case on the correct track from the start. We fight for appropriate compensation for victims of car accidents, truck accidents, and motorbike accidents by standing up to insurance companies.

Get a free online consultation or call 719-300-1100 for a free consultation if you have been injured in a car accident.

Warrior Personal Injury Lawyers
1902 W. Colorado Ave., Ste. 100
Colorado Springs, CO 80904

Free Consultation


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